Does a Beggars Pizza franchisee waive the right to object to the chosen forum?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
26.6 No Waiver. No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship will have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
Based on the 2025 Beggars Pizza Franchise Disclosure Document, a franchisee does not waive claims under state franchise law. Section 26.6 of the franchise agreement states that no statement, questionnaire, or acknowledgement signed by a franchisee will waive any claims under any applicable state franchise law, including fraud in the inducement, or disclaiming reliance on any statement made by the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
This means that even if a franchisee signs a document that appears to waive their rights, this provision ensures that they still retain the right to pursue claims under state franchise law. This includes claims related to fraud or misrepresentation during the franchise sales process.
For a prospective Beggars Pizza franchisee, this is a beneficial clause. It provides a level of protection and ensures that they are not unknowingly giving up their legal rights when entering into the franchise agreement. It is important for franchisees to understand this provision and to consult with an attorney if they have any questions about their rights under the franchise agreement and applicable state laws.